One of the reasons that people fail at managing their finances is that they do not plan to spend their money.
Now, to that you may say, it’s my money and I will do what I want with it. I worked hard for it and it is okay to spend it. And you are right; it is okay to spend your hard earned money. But before you spend that money, read the rest of this article — okay.
If you really think about it, money is only good for three things, and we have all done them. Money is good for: spending, saving and giving, that’s it. All the things we do with money can fit into these three categories. So it is okay to spend your hard earned, worked for, money; you just need to plan to spend that money.
So what happens if you do not plan to spend your money?
You spend money at places and on things that you did not plan to spend money on. It’s that simple. Have you ever gone into a store and spent more money that you planned on? It happens every day. When we do not plan to spend our money we allow others to take control and spend our money. You are not managing your money effectively because you are not planning to spend it.
Furthermore, business is quite adapted at getting you to spend your hard earned money. If you watch TV today you will see many commercials that are frankly attempting to get you to spend your money. Can anyone say marketing? When you go to the grocery or the pharmacy and you get to the checkout, do you plan to buy that magazine or that candy bar? We are visual beings and if we see something we like we want it.
You may think that, that is not a lot, but if you do this every day, that is buy something that you did not plan to, it adds up. Let’s say that in an average month, you spend $5 a week on magazines and candy bars at the checkout. Does not seem like much but overtime it grows. Five dollars a week works out to be $20 a month and in a year you spend $240 on candy bars and magazines.
So what happens if you plan to spend your money?
When you plan to spend your money you have a budget or spending plan and you know where you are spending your money. You know how much money you are spending and you are not haphazardly spending money on things and in places you did not plan on. When you plan to spend your money, through your budget or spending plan, you are telling your money where to go and what to do. You have complete control of your finances.
We have already established that it is okay to spend your money, so it is okay to spend $20 on magazines and candy bars. I just want you to plan to spend that $20 on magazines and candy bars.
It is important that you plan to spend your money. When you do not plan to spend your money you give control of spending your money to others. When you plan to spend your money you take control of your financial situation. The choice is yours – choose to plan to spend.
Article by Wil G.
This article appeared in the carnival of wealth, Canadian finance carnival, and carnival of personal finance.
No related posts.
{ 0 comments… add one now }
{ 3 trackbacks }